F.NO.450/71/99-CUS.IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Excise & Customs

Subject: Operation of foreign flag vessels along the Indian coast without a valid licence issued under the M.S. Act, 1958 – reg. –

I am directed to refer to Board”s Circular No. 53/99-Cus., dated 24.8.1999 as amended by Circular No. 70/2000-Cus., dated 30.8.2000 on the above mentioned subject. The said circular was issued to enforce the licensing requirements of the sections 406/407 of the Marine Shipping Act, 1958 for foreign flag vessels which call at Indian Ports. It has been pointed out by the Directorate General of Shipping that a foreign flag vessel which is chartered by an Indian citizen or company or co-operative society, will require a licence under section 406 of the said Act from D.G. Shipping for operation within or outside India similar to any Indian ship.

2. In view of above, it has been decided that the Board”s circular No.53/99-Cus.,dated the 24th August, 1999 would stand modified to the above extent, that is to say, a foreign flag vessel chartered by an Indian citizen or company or co-operative society, would require a licence under section 406 of the Marine Shipping Act, 1958 from D.G. Shipping for operation within or outside India.

3. These requirements may be brought to the notice of all concerned by way of issuance of suitable Public Notice/Standing Orders.

4. Difficulties, if any, in implementation of this Circular may be brought to the notice of the Board. Kindly acknowledge receipt of the Circular.